Even though the election is over, there is so much going on right now with this country from a financial standpoint. I had to comment on the latest development--this Big 3 Bailout.
Okay, first of all, what GM, Ford, and Chrysler are asking for is not a "bailout." They are asking for a loan from the federal government. A loan implies repayment, unlike the financial system bailout. There are actual terms of repayment being discussed and the auto companies are very open to speaking about.
Next, I have to get this off my chest. On principle, I am totally against this sort of government assistance for any business. In general, I think if businesses are badly run, they should fail. And I'll be the first to say, the Big 3 have been some of the worst run businesses in this country for a very long time. And they have themselves to blame for that--for a long time, they put out crappy product that didn't appeal to buyers, yet still had the arrogance to think that they deserved to continue to have total market domination. Sorry, that's not how it works. Also, the UAW bears a HUGE portion of the blame for this. For many years as well, they've refused to give wage and benefits concessions, even as market conditions demanded it. They've continued to think that people who put bolts in holes all day deserve to make $30 an hour. Well, I'm sorry, I have a law degree, and I don't make $30 an hour. The auto industry created a false standard of living for a great many people in this country who have no education (i.e. line workers) for a long time. Now, the shit is hitting the fan. And I say this as the step-daughter, granddaughter, and daughter-in-law of UAW member GM workers. But something has to give.
Okay, in light of what I just said, it pains me to say that the government MUST give these bridge loans to the Big 3. Some are advocating that they go into bankruptcy. That would be an absolute disaster. Who the hell would buy a vehicle from a company in bankruptcy? I predict that if the Big 3 went into bankruptcy, any one of them, their sales would fall to at least half of what it is now, which are already in the toilet due to the economy.
Many Republican Senators are refusing to give the Big 3 the money. What they don't understand are the steps the Big 3 have actually taken recently to return to profitability. I know from speaking with my step father and others all the changes that have made in these plants. These new plants are efficient. What 3,000 people used to do, 300 now do. And I have personal experience with the fact that GM (I can't personally speak to Ford or Chrysler) is putting out some damn good product now. I LOVE my Saturn Aura. It's a fantastic car. Also, the Chevy Malibu is THE BEST mid-size sedan right now, beating all that Japanese crap that people think is so great.
Another thing these Senators, and people in other parts of the country, don't understand is that if the Big 3 go away, 3 MILLION jobs would be immediately lost, many right here in Michigan. Our unemployment rate is already 9.3%, 3 points higher than national average. If those 3 million jobs are lost, that unemployment rate could be double that. Those are depression level numbers. Also, 1 in 10 jobs in the entire nation are linked to the auto industry. Bye bye millions more jobs. Plus all the small businesses that would die in the area of these plants because the auto workers are gone, and all the tax revenue gone from cities that have plants in them. Holy crap, the idea is frightening.
As I said, saying these things go against my strongly held beliefs that the government should stay the hell out of these matters. But I do not want literally two-thirds of the people I know to lose their jobs, and I want my family members pensions to be secure. So these bridge loans MUST happen for the good of the Mid-West and the country as a whole.
Okay, first of all, what GM, Ford, and Chrysler are asking for is not a "bailout." They are asking for a loan from the federal government. A loan implies repayment, unlike the financial system bailout. There are actual terms of repayment being discussed and the auto companies are very open to speaking about.
Next, I have to get this off my chest. On principle, I am totally against this sort of government assistance for any business. In general, I think if businesses are badly run, they should fail. And I'll be the first to say, the Big 3 have been some of the worst run businesses in this country for a very long time. And they have themselves to blame for that--for a long time, they put out crappy product that didn't appeal to buyers, yet still had the arrogance to think that they deserved to continue to have total market domination. Sorry, that's not how it works. Also, the UAW bears a HUGE portion of the blame for this. For many years as well, they've refused to give wage and benefits concessions, even as market conditions demanded it. They've continued to think that people who put bolts in holes all day deserve to make $30 an hour. Well, I'm sorry, I have a law degree, and I don't make $30 an hour. The auto industry created a false standard of living for a great many people in this country who have no education (i.e. line workers) for a long time. Now, the shit is hitting the fan. And I say this as the step-daughter, granddaughter, and daughter-in-law of UAW member GM workers. But something has to give.
Okay, in light of what I just said, it pains me to say that the government MUST give these bridge loans to the Big 3. Some are advocating that they go into bankruptcy. That would be an absolute disaster. Who the hell would buy a vehicle from a company in bankruptcy? I predict that if the Big 3 went into bankruptcy, any one of them, their sales would fall to at least half of what it is now, which are already in the toilet due to the economy.
Many Republican Senators are refusing to give the Big 3 the money. What they don't understand are the steps the Big 3 have actually taken recently to return to profitability. I know from speaking with my step father and others all the changes that have made in these plants. These new plants are efficient. What 3,000 people used to do, 300 now do. And I have personal experience with the fact that GM (I can't personally speak to Ford or Chrysler) is putting out some damn good product now. I LOVE my Saturn Aura. It's a fantastic car. Also, the Chevy Malibu is THE BEST mid-size sedan right now, beating all that Japanese crap that people think is so great.
Another thing these Senators, and people in other parts of the country, don't understand is that if the Big 3 go away, 3 MILLION jobs would be immediately lost, many right here in Michigan. Our unemployment rate is already 9.3%, 3 points higher than national average. If those 3 million jobs are lost, that unemployment rate could be double that. Those are depression level numbers. Also, 1 in 10 jobs in the entire nation are linked to the auto industry. Bye bye millions more jobs. Plus all the small businesses that would die in the area of these plants because the auto workers are gone, and all the tax revenue gone from cities that have plants in them. Holy crap, the idea is frightening.
As I said, saying these things go against my strongly held beliefs that the government should stay the hell out of these matters. But I do not want literally two-thirds of the people I know to lose their jobs, and I want my family members pensions to be secure. So these bridge loans MUST happen for the good of the Mid-West and the country as a whole.
1 comment:
I think you're right on, Heather. If a business messes up, they should pay the consequences. However, in this situation, we would ALL be paying the consequences if the Big 3 didn't get help. It IS frightening...
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